Gold News

Gold Gains, Silver & Oil Fall as Fed Starts to Fret Over "Excessive Speculation"

From Chris Mullen at

Gold fell $3 to $1161.60 in late Asian trade on Tuesday and then rose $6.55 to $1171.15 in London before it chopped its way back lower in US trade.

Gold still ended New York dealing with a gain of 0.1% on the day at a new record closing high above $1166 an ounce.

The Gold Price in Euros rose to €779 an ounce.

Silver traded mostly slightly lower in Asia and London and fell to $18.31 in New York before it rebounded a little in the last couple of hours of trade, but still ended with a loss of 1.0%.

Platinum lost $19 to $1439, and copper fell a couple of cents to about $3.11.

Gold Mining and silver equities fell a little over 1% at the open and remained at about that level for most of the morning before they rebounded a bit in afternoon trade, but they still ended with slight losses on the day.
Oil fell back to about $76 after tepid economic data reinforced worries over energy demand.

The US Dollar index ended near unchanged as economic unease was offset by minutes from the Federal Reserve's latest meeting that reiterated its intentions to keep interest rates at record low levels for an extended period of time.

The US central bank's November 4th meeting also saw some policymakers state that record-low interest rates of 0% might fuel “excessive” speculation in financial markets and perhaps forge expectations for rising inflation.

Treasuries added to early gains after Tuesday’s 5-year note auction saw a strong bid to cover of 2.81 at a high yield of just 2.175%.

The Dow, Nasdaq, and S&P fell in early trade on concerns over bank lending and mixed economic data, but stocks ended with only minor losses on the Fed's minutes.

US third-quarter GDP was revised to 2.8% growth from the previous 2.9% reading. The Case-Shiller Home Price Index for Sept. showed a worse than expected 9.4% drop from a year earlier. The official FHFA home index held flat for the month.

Consumer Confidence rose in November.

Wednesday at 08:30 EST brings Personal US Income for October, expected up 0.2%; Personal Spending expected up 0.5%; PCE Price inflation and Core PCE Prices both expected up 0.1%; Initial US Jobless Claims for last week, expected at 500,000; and Durable Goods Orders for October, expected up 0.5%.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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